BK 469PG 674

INSTRUMENT PREPARED BYVIRGINIA QAS AND OIL BOARD

ORDER RECORDED UNDER CODEOF VIRGINIA SECTION 45.1481.25

V I RG INIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT

REPORT OF THE BOARD

FINDINGS AND ORDER

Bassa RaaraaaaaJrtaa — ..Inc. ))

REUEF SOUGHT: (1) ESTABLISHMENT OF THE DRLLlNG )UNIT DEPICTED IN~A HERETO )AND SERVED SY WELL NO. V )~c; - —11880acres )(h«ebr Sub)ect DrNng Un') )PURSUANT TO VA. CODE f45.1481.20; )(2) POOLSIG OF INTERESTS IN )SUBJECT DRILLINQ UNIT PURSUANT TO )VA. CODE 5 45.1401.21,,FORTHE )PRODUCllON OF GAS OTHER THAN )COAt.BED METHAIA QAS FROM SUBJECT )FORMATIONS (h«ebr rsfened )to ae 'C ~Qse" or "Qaa'); )snd (3) DEIBQNATE THE APPUCANT )AS THE UNIT OPERATOR FOR THE )SUBJECT DRILLING UNIT )

)LEGAL DESCRIPTION: )

)DRILLINQ UNIT SERVED BY WELL NUMBERED )V TO BE DRILLED IN )THE LOCATION DEPICTED ON~A HERETO, )

Sstafy Peel Corp. Tract )W a«ss )

PIIR5IR ~arfQLE )SBNBMQK ~ever T )Die'= COUNTY> VfRQSSA )(the Babjerd Lande'a m«e pargculsrly )deacdbad on ErddbS A agsched hereto )and made a psrt h«ecf) )

)TAX MAP IDENTIFICATION NUMBERS: )

)TAX MAP IDENTIFICATION NUMBERS PQR ALL PARCELS )AFFECTED BY THIS ORDER ARE SHOyfN ON EXHIBIT(S) )~WfSCH ISIARE ATTACHED TO AND A PAltT OF )THIS ORDER. )

VIRGINIA QABAND OIL BOARD

1. Haadno Data and Puree: This magsr cane on for hearing before the Vbgbda Gaa and OilBoard (hereeger "Soanf') st 0:00 asm. on Nay 20, 2000, at the Sougrweet Vbgl(ria Iggher EducagonCenter on the c«npua of Vlrgbda Highlands Commungy CoNage, Room 240, Abingden, Vbgbds.

2. Amasnm: Tfeasy E. $!as M lilt lie hpptwnt. IMNel ~. s. plgeel,AosWmt Attorney Qenerel, wes pre«mt lo «hdss the Board.

3. Judsdk¹on snd Nose»: Pursuant lo Va. Code g 45.1~1.1sf serf., 8» Bo«d Nnds lhatit has Judsdkgon over 8» subject mater. Based uPon 8» evidence presented by the Board¹so Nnds that ths APPNcant has (1)~ dus dggence in conducNng ~ search ofreasonably avsgabkr soon»s to d¹ermins the kkudky and whereel»¹s of each and ¹I owner, coalowner, or mineral owner having an interest In Subje¹ MNng Unit underlying of SubjectLsntfsi (2) has swpa~~ lo 8» Board th¹ It I»s given sages to those Forges (l~~person(s)'heg»r starring lo Incgvtdu¹s, corporeg«», p«lnershlps,

tx =-----, bu¹s, j¹nt ventures or other legal enNNes} sogged by Ve. Code $ 45.)M1.18lo ncgcs of8» Avv"

"i Ssd h«eln; and (3) Hurt 0» persons set f«th kt thek APPNcagon agd Rogce of Hearing

have been' —

by APPNcant through Hs dus dBgence as Own«s or CI¹manfs Co@—~-'ss'-~~ und«lying Subject DrNNng UnN, inchdlng those sat out In B¹tBrB~ have not her¹of«eleased, s¹d or~agreed wNh the AppHcant to pool th¹r Ges inhmsh in DrNNng UnitUnknown andror Un4 —-"'- ownersloalmanls in the subject MNng Unit «e on Bshgdt B.Furg»r, 8» Beard has caused nogcs of Nds hes¹ng lo be pubgshsd ss requked by Ve. Code g 46.1-381.18 B. VHI»reupcn, the Board hereby Nnds that the no8oes given her¹n saNsfy aN ¹¹uleyrequir«nants, Bo«d rule requlr«r»nts and the rrdnknum slandsnls of due process.

4. As»nrknsnts: None

5. Dismissals: None

es ~ for Subject Formalks» undsrlyktg and——

v of 8» Subject Lands,— — —.«s

cogecgvely ' "and referredlo ss 'WsNDtn,~ —, —.antybr ~~i in the DrNNng Ung');and, (3) Ij»t the Beard de¹gn¹e Gases=—— . — Iss. es Unk ~.

7. RsHsf Qrsnu¹: The requs¹sd reNef In this cause shsH be and h«e(ry is ¹anied.

7.1 The Board h«eby: (1) e¹atrNshes Subject Drggng Unit Pursuant361.20; (2) pursuant lo Va Code 5 46.1481.21C 3, designatesNeunlsin, lnc. (herek»lier 'Unit Operai«') as th ~ Opersdorspends Wsg Ro.V~ kt the Subject MNng Unk at 0»agached hereto as BdhgrB A to produce C«wengonal Qss ftohtsubject to 8» pennk povkdons c«dab»d In $ 45.1~1.27sf1860 es amended, lo 5 4 VAC 25-150 sf s«f., Gas and ON Regtd28-180 et seq., Vkgkde Qas and ON Boast Reguhllons, aN as

lo Va Cods g 45.1-

~ and lo $ 4 VAC~Iwf~ IIWll Nme lo

tkne; end (3) pursuant to Vs. Cods g 48.1481.21A, Ihe rights, '. —and e¹¹es in

and to the Convention¹ Gss in Subject DrNng Unit inc@ding of the known sndunknown persons N¹ed on Babgrg $4, — —

hewdo and ~ pert h«eof, andNl¹r known snd unknown h¹rs, esecukns, ~esa~mea~, ~, Iru¹ses, as¹gr»,and ~~.b¹h Nnm«Nab and rem¹s, bs end hereby «e in the SubjectFormstkes in the Subject Orang Unk derlylng and c-.~~ Ihe Subject Lands.There are no appNcstde Nekl ruk» end 6» unit is subject kr ~ spe¹ngrequirements of Ve. Code g 45.1481.17.

8. Blscuon snd FjscHon Period: In lhe event any Gss owner named (n the Applk»Non andRoNcs ol Hearing has not i~~~ reached a v¹untary agreement lo share in 8» ~~ of 8» wellto be krcsted in Subject DrIBng Unit at a rata of payment mulusgy agreed lc by sa(d Gas own«and Ihs

8. RsNsl R«suaslsd: AppNcsnt reque¹s (1) that pursuant lo va. $ 45.1481.20, theBoanl sslabgsh subject DrBlng Unit to be served by weN Ro.~;and (2) 8»t pur«mnt lo vaCode g 46.1-38121,the Board pool the rights, ~-:~and est¹es in and to ths 'ConvenNons Gas ofthe known snd unknown persons Naiad in the sga¹u¹ B¹dbB 04, end that of their known snd unknownheNs,~admlnhlraiore, dsvtsees, tru¹ses, assigns and ~,b«h and rwn¹e.for 8» ddBng and ~~, In¹udlng producgon, of C«wengonal Gas hom 8» Subject MNng Unit

~ in Paragraph 9 Maw andwrlyen noyes of his ebeyan of the optke sebebd under Paragraph 9 herein lo designated Unit

Op«alar el Srs aNmss shown below wNhln Nrly (30) days ham ths dab of Ipt of ~ aopy ot thisChder. A Nary ebcyan sheN be ~—.~le have been made if, on or before ths dey of saki Stithyperiod, such ekceyny person has deyvsred his wryhm elsoyon to the destgnassd nl Opecabr at Nce

address ahavm hebw or hss duly poslm«lr«l and pboed hb wryten ebeyon in cbss UnNsd fkatssmaN, peslaye prepHd, «klreesed b Qur Unit Operator at tha address shown bebw.

Esymated, Compbtsd-br4vrcductbn Costs: 5544ANLOO

Any yas owner and/ar ebknants named in Exidhtt $4, sbcb this optbn(Opyon 1) undsmtarub and agrees that IWr inmal ~,—.t under Ns opNan isIbr Ihslr Prep ~ sham af ths AppNaant's ssymab of actual costs andecxpsnses. It is also un ~ hy ay perseus sbcyng opyon set they «sagreabQ la pay thsk ve~awi~ sh«e cf Iha actual arid msaapen~ ssd ——'-ed by the aperebr in Ns Qo«d Onbr.

A Parlblpatlng Operabr's ~~~~ acct hereund» shaN be ths rssuNabbbsd hy rncdypIykcg ths s"-~~ Opsrabr's 'PCom~4vcoduetbn Cost eet bryc abave. Ihevhbd.event a PartislpaIhcg ler abets lo parRipab and thysssymeb of his prop le part ot tha C—,~ksth above, aN vdNn the Sma sel ksyc h«eIn and in thaPacaymph 5 ot Ns Order, than such Pa~whave abated not to PStkdpate end lo have sbebdPart~a pursuant to P~~i 9.2 herein.

~however, Scat in thel~~bme

9.1 Ostbn 1 - To Parlcfesb In Ths Dsvsbsmsst and Oasreyah af Sm DrNNna Un@

Any Qes Owner or CWmant named h SahMt %4 who'as not reached avoluntary aye~s~sa wyh ths Oparabr may abet 'Ia ~mv!ymca In the WsyDevebpncsnt and Cc-- ~ on the Subject Oryyny Unl ( 'PadicipayngOpera~ by agleshlg ta Pay ths ~sense af such I-~sseaymrmeg Oparabrsprapartionale part of the actual and reasonable aosb, ~ ~~supervision fsa, of Sar Wsy r'r:—.—.-4and Ci

- ~, as mcus partbuterly setforth in Vlrghda Qss and ON Qa«d INegulayan 4 VAC'25-155-100 (h«etn'Cempbtsd br Preduetbn Cosh'. Furler, a PsrtkdpaSISI Operator agrees ta

the ~~ Of Such rwev'jeany Operabr'S ~aewrAI part Of theEslmabd, Campbted4br4vrectuetbn Cash as set ksth; bebw b Ihe Unit

Operabr wlNn farty4hm (45) days fram ths later of the of mcdyng or 5»cbte af ree«ding af Ns Ckder. The esyrnaM Comp -Pmlucyan Casbfor the Subject Dryyng Unit «e es foNaws:

9,2 Ocean 2 - To ttscshw A Cash Ihsaa C—-' ~: In NeuWell Development and Cv

— -i of Subject Dryyng Unlabove, any Qas Owner or Cbknant named in EshSR ~reached a vcdunlary aymement wNh the Operahw may ebonus eonsideretbn of ~ per nat mberal acre

of ~uveywiew In Ihsnder Paraymph 9.1the unl who has not

lo accept a cashby such person,

ccrnmerudng upan snhy of Ns Onbr and annuayy unyleommencancsnt of pneduelkm Nem Subject Dryyng Unit, herd =="a royaltyof 1/5th of 5/Syw jhsehrs and enstcsy p«cent (12.5%)] at the nst r

——recehed by the Unl Operabr for tha sab of ths Qas hem any WsyOevsbpmsnt and Opsrayon covered by Ns Order by the Qas owner'spemenlsge Int«sst VINn Unl as set beth In the A==—"==':— snd hbyes afHearing (for Purposes of this Onbr, nst Proceeds sha8l be actual proceeds

BK 469PG 677

rscshrsd less post-production costs Incurred downekesrh of Nrs weSured,InkkrNnn0, but not Nmked to, Nstherh0, compresskrn, trsnspcrtstkrn and

marksNrQ costs, wheNurr perhnnsd by Unit Operator or e p««m) as fair,

tom«raids and equNstds--—v- — .to be pekt io saki ower. Ths

i'ashbonus sheN become dus and cvdnN when eo elected a(st shaN bs ~ "paki or~ wQNn ons hundmd twenly (120) days lof

——w of this

Ord«. Themlhr, «must cashbonusss, if any, sh«I dueandswkt0on~SCh anrdVereary Of the dale Of ~~w Of Nde Order in ihe eVSnt IecduCNC

item Subject DNln0 UnN has not ~~~w ~ace~~, snd once dus, sheN

l» lend«ed, paid or escrowsd wNhtn sbdy (00) days of «kl «mtv«e«y dele.Once the IrNNal cash bonus and ths annual oesh bonuses, If sny, «e so paid orNeoaeL Mhl leIIIWlts) SIN H~Ih IUI hr Q tWN, InhNEIL aNIrtakns of such sl«Sn0 Qas own« in and lo the Qas

Nlrom Subject

Fcien~t In fhs Subject 4Nlds, «rcapt, however, fcr Nle 1/00l r~ dushsreund«.

Subject lo a Nnal Ie0al ~T~~ of own«ship, the elec Non made und«NNsP«a0raph 0.2, when so made, shaN be ~=~, In fuN 0 v ths rl0ht, ';~~,and rdskns of such elecNn0 P««m in any WsN Dsvekrpsrsnt and Op«aNoncovered h«eby and such «scNaN p«son sheN bs ~.~ to and h«eby doesIssue end aesiSn Ns rlNht, ntereats, end tdskns In and lo Ol Qes prcduced fromSubject Formaden in ths Subject DriSn0 Unit to ths Appl

9.3. Osscn 3- Tc Sh«sIn Thar-' ==-.tAnd ~ArA Mes '-'- -a

Person On A C«d«f Ss«s Asd Te ftscsbrs C—— — —.In Usu Qf Cash: In

Neu Of p- ~w in the VAN ~.4ht and Cr— .—.Of Subjdtt DrNNn0

Unit under ~~ 0.1 above end in Nsu d r . w a cash bonusconoid«adon under ~~ 0.2 shee, any Qas Owner +CWeant named in

SsNbS $4 hereto who doss nct mech ~ vokrntsry ati ~ wNh ths Op«stermsy elect to sh«e kl Ihs WsN Cev4eeysnesm «rd Cv ~"~s of Subset DrNNn0

Unit on ~ c«ried basis (as ~ 'c«vied wsN operate] se Ilret tha ~=-~pert of 0» CompletsHbr+reducSen Costa h«eby allocetds te such Canted WNII

Operator's interest Is ch«ged a0akwt such Canted WNN. O~ sh«e ofproductkrn from thrbject DrNNn0 Unit. Such Carried WAIN Cv "s rlyhls,interests, and tdakns in and lo 0» Qas in Subject DrNNnSpnN shaN be ds«nsdand h«eby are asslSned to ths Unk Op«et«urdN ths ~~ born Nrs sets ofsuch Corri«l WsN Operator's sh«s of preduclkm bcm Subject Ddln0 Unit

(srckrstve of any royaNy, «roses or ovenkNnN royeby, or non~-z ornon cosHNlsrbr0 burden 1~~kl sny loosey IHPHIQIII%IOtlt thereof of ~~liltrektNn0 Ih«eto covedn0 such kd«vvd) «lusts three h p«eeet(000%) fora leased ird«est cr two hundred p«cent (200%) for r ~ inl«est(wtdchsv« is ~~) of such C«ried WsN s sh«e of theComidstsddcr+rcducNon Costs =:='e ths Inl«eet 8 such C«ried WsbOp«alar. Any Qas Owner andkrr Oaknant nam«l br Qbt(S QS4 who eben Ndsoptkm (OPNon 3) urrd«st«uts and aNrees that C—~ -+wductlon Costs«e ths Operator's actual cosh for well ~. 'nd ~ --. When NrsUnit Op«ster recoups and re«rv«s farm such C«ried Wali Op«ster's asslNnsdinlersst Ihs amounts provided for above, then, the a«Steed krt«eet of suchCanted WsN Op«ster shsN a ~y revert back tr such Carried WellOperatw, and Nom and elt«such everskrn, such 'IusNOP«akrrsheNbetreated ss If N had ps='==.=:= ~ under P Nrh 0.1 abave; sndthereab«, such p«tkdpadn0 person shaN be ~~-v- with and ehSN psy hisproportkmste part of sN further co«s of such weN dsvebpmtrnt

Si< 469PC 678

Subject to o Nnel LS¹ detsrmkration of ownership, the election made under this

ParaSrsph 0.3,when so made, shaN be s-"=:=:"=:wln fuN fo'i tho HSht, »~snd cWms of such elocNnN person In eny weN ~; end oporetkecov«ed hereby and such ¹aoNng person shaN bs .~ lo have and herebydoes asslSn his HSht, »~ and cWms In and to tho Bas produced Nem

Subject Formalke bt tho Subjsts DrNNnS Unk to Nro Unk for Sar periodof Nmo durlnN which hL inlets¹ ls carried as above providsdl prior to Ns mver¹cnback lo such ¹ocNnS person.

10. Fssure kr Pronsrlv fasct In the event a person n«ned ln SddhB 4 hereto does notreach s vobndary ~~~ii wNh tho AppNcant and hNs to do so wNhln Ihe Nms, lr Nrs manner, and ln

accordant«wbh tho terms of Nds Order ons of the abemeNvoe eet forth ln paraNnnfh 0 above for whhhhis kd«edt ttuaNNoe, thon such person shaN hs deemed ts have elected not to p ~~ ln tho proposedVNsN ~—

and Op««Non ln Subject DrNNnS UnN and shaN hs ~—,suhj set to any Nnal IsSal~i~1 ef owrrorstdp, to have ¹octsd lo accept es:":.:~iIn M for IUch parsee's tight,and claims ln end lo Nto Gas Nte con~ " —

pnndded ln Peratpeph S.i abave for widch Ns

i»h end cWms Inlrd«ast ..and shaN be deemed lo hove Icos«l anrbbr as¹Snod hL right.and lo Gds In the Subject DrNNns Unk to Ihs Unit QPorahrr. ~~ who faN to r-

deemsd ts hare:::::Sro ~nycti~ ~ Ond Ianna Sat Nnth har¹n St rmewepnfuN for tha rlNBI, ~, snd cslms of such person ln and to the Gas produesd

dsrtybrS INuhja¹ fends.

~—-- etc¹ shaN boMS.2 In =:e In~ Subject Fr»»r»~ s

deemed br have ¹ostad lo accept as ..iIn IuN for such person s dSht, ~ and ¹¹ms ln

~nd 'lo ths Ges tho aave~eeves pewvsaeaa Ill renew»r» ~ 0.2 above for whish baste¹ NuaNNos

dependbtS on Nto snoose bunhms ~— to such kd«est vyhsreupon, any oseh bonus ~~duo ss e loouN of such doomed ¹o¹km shaN bo tendered, p¹d or~~ by Op«asar vdNdn onohundred hnsaty (120) days aSer Nre last day on whLh such~person Nds Order ¹nnddhsVS Pekj hL prSPCrdenats part Of SuCh scot Or Sfnndd hhVO made nVy ~. for tho~~.»» ~~a ~=——,»»»»~.a»»li =-'=-=.~sufcr the dSht, '~ and cWms of such person In and to the Gas u ~ ILdrjdct DrNNnS Unk ln SreSubject Lands covered hereby, encopt, however, for eny 1lSth royaBes wtdch wouW beoone duopursuant to ~~ 5.2 hereof.

12. AosLnmord of Interact In lhe evwt a p«eon named ln BahthB Q ls unahls to teach aolwlhay esyemew~ea 'lo share In tho VyoN DsvoloPlnsnt ond OPoreNon»r»~av»»» ee by thL Order ¹s

rats of pfNrmont ayreed to nnduaNy by sold Owner cr CWrnant and Ste AppNcont, «nf sebi person ¹«dsor faNs ts ¹oct to do ether thon parselpate under poraBraph $.1 above ln the wtN D-~~» ond—

ln Subject DSBnS Unit, then such p«eon ¹raN he to have aad shaN have ~urdo ~4 such par«nA rlSht,

'- --~ and cWrns hr end lo sold weN, ln F—," —ln

subject Unit, and alber share ln and lo Gas podustkm io whLh such mey he enNNsd byMME cf any ¹ocNcn or doomed ¹scNcn oreundsr In ~~eve WNh tho r»»»~ cf thL OlderNcvendnN s¹d~

13. Unb Ooorstor Ior Ooomhut: INanBo lboaoweo«Pleo ~~, Ine. shaN be andIs»»»io ~ ss Unk OpoANw 84»»»~~ to drB end operate WN INS In Subject

F~;. — — ~ ln Subject DrNNng Unit, sN subject to 0» psnnN prevWons conWned ln Vo. Code 5 45.1-381.27et see., Q 4 VAC 25-150 sf see., Gas and ON ftsSuWlons and Q 4 VAC 24-150 st soe., VNSbrlaGas and ON Bead ItsSrdaltons, eN as ~~~ Item Nmo to tbno, and eN ¹ocdcns jerpdnrd by W~ OrdershaN be «rrnnnrnLated lo Unk OPoralor ln wriNnN at ths address shown b¹cw.

11. D¹huh Bv — -'- —Person: In tho event a person named ln tbAMl B4 ¹ecL toPINkffsda under Parajfraph 5.1, but faNs or rehrses lo pay, to assure Iho payr ant or to make an

-wN Sre Unk operator for tho payment of such parce's preporNoneta Imrt of Nro ~i~C .~~nfuotlon cash as oet forpr hsrebr, aN wBdn tho tbne and ln the m« ~as r----- ~ In

thL Olthr, than s«th person shoN he ~~ to have efNahawn his oLcNon to r»-~and shaN he

BK 469PG 679

ltsnSe ftesourese~ Nhxmtsln, Inc.CSS WMl QVn StreetP. O. Isn 2125

VA 20212Phone: {2NS)5154552Fsn: (NNS) ~TSNSAttn: Ph5 Ihnn, NSSIrtst Lands»n

1S. Crv«n«v»ment of C-- i«UnN Opendor sheN commence or pause to commenosop«aliens for lhs drNNn5 of the weil cov«ed h«eby wldn seven hundred arid th+ (720) days from thedate of 55s Onler snd shaN proseods ths same wNh due ~~. If Unit Op«war st»N nct have so

~ndf«prosecuted, 5»n this Oner shel —,',ee»pt for any cash s«ns beoomln5payabls ttsreund«; cS»rvdss, unhss sooner Isnnk»ted by Ord«of the th»rd, Sds Onler sl»N enpke at12:00P.IN. on 5» date on whkh the weN cov«ed by Sds Ord« ls pennon«tdy ~~ and pkr5ged.However, in 5» event an appeal ls taken Nom this Onhr, 5»n the Nn» ——, NNnS of 5» PetNkm

for App«ll and 5» Nasl Order of the Cbcult Court she5 be «adudsd ln 5»~periodi~~ h««n.

15. Ossrstsr's ijsn: Unit Op««or, ln «kNNon lo the other rlNhls ~h««»der, shallhave e Nsn and a rISht of set olf on 5» ees estates, dShts, and kderssts owned sny person subjecth«eto vd» Waste fo p«tkdpekr und«P«aNraph 5.1 In 5» Subject DrNNnS Unh to 5» «r«rd St«cc«slncuned ln Ihe 0%r» or opendkm on 5» Subject DrNNn5 Unit «e s cherSe such person'sin'«sst Suoh N«» and rlNht of set olf shaN bs ~ —ss to each ~~ end shaN r«neinNens urdN the Unb Opsmter drNNn5 or operadnS 5» weN covered he»by hes been Ihe fuN «nounhdue under 5» Ism» of Sds Order.

18. Escri Pmvkdons: APPNcent has,~ —— lo 5» Soanl Sell Ih«e am UnknownandkN Urd~ INes Own«s wNNn the 8ubject DrNNn5 UnN whose Int«s«s «e Nubjaat to 5» escrowrerp '~ of P«atphph 18.1 of the sub)sot DrNNnS UnN; and, 5» AppNc«d rap»seated lo 5»So«d 5»t 5»re «e ae oodNcdnS cWmanta In ths %gest DrNNn5 UnN wl»sa ~.. «a sub)«N to5» yse~is of remisyrcsjns 18.2 hereof. Th«aibm, by Sds Ont«and unless «ut a 55 ~ieeee ord«edby 5» SS«d, 5» Es«ow ASent named h«ebr, or any ~~ n«n«l by tha aboard, te nnpdmd to

ba«lnS escrow account lbr the Subject Dilkr5 Unit (h«eh "Esenw AosowW), sndto mocha and account Io 5» soard pursuant to Ns a5——.—Ibr ths escrewed Itmtjs i~m ~~In r~eya~ 18.1end 18.2:

%schools Sang NIA.VAT515P. O. San 1S551P~ .VA 25525T~:(555~)

18.1 Es«ww Pmvishns Ibr Unknown or I'=—'= "-~ Parsons: If «ri payment of bonus,royehy payment or other payment dus snd owhS cannot bs m«k I

~~ 5» personenNNed th«sto cannot be ke«ed or ls unknevm, 5»n such cash tv vs», royaby payn»ntor oth«psym«d shaN nct bs ——.—."w wNh any funds of 5» Ur 5 OP«ster end shaN,pursuant lo Va. Code j 45.14M.21 0, I» depeelad by 5» OpeIahrr lrds 5» Escrow~ convnsnckr5 wshbr one hurubed twenty (120) days cf -- ~ cf Sds Ord«,~nd omdlwlnS th«eshw on ~ rnonddy baelo WNh sech dsposN br be made by ~ daklwhhh ls no Iet« than sbdy (80) days alhr ths last day of 5» month bsbrS nspsrlad amMbrfor wldch funds «e subject to dspeet Such Nmds shaN I» hekl lo" 5» «educ)vs ws of,and sokr beneNt of the p«eon eni«l 5»rsto unW such funds Icon be paid to such

18.2

p«eon(e) or undl the Escrow Agent »gnqulehee such funds ae rsquhsd by law orpursuant to order of the Soard in ~~m wNh Va. Code 5 45.1441.21D.

~hl F c --'- - a==—'-lI my paynenl of lenl». wyNy ~~~ In «s»ee of orqpdng vpenaavseeJ Pique~, or cg»r dus end owing

under Nde Order Cermet be made r 0» pereOn cogged Cannat I» madec«tefn dus to ~-,~ -vr ctabne of ~— ~ endfor a decret or on 0» Ngs, then

L~uoh cash bonus, roysgy paya»nt, p»coeds in acme ofor og»i payment, hrgag»r whh F ~Op«ster'e ";~' Costs fafd to Unh

OPNIIar pureuard to reteyt~l 0 1 h«esfi If snyi (1) eheg nct I» ~retweyae wNh «vyhrnde cf8» Unh~snd (2) ehaN, pursuant ls Va Cods g $.1401.22A 2, 45.1-30Mt A 3 and 45.1-301.22A 4, be =

—=:":— hy 0» op«alar Nde 0» gs«aw Accountwlgdn «» hundred twenty (120)days of moanNng of gde Onhrr, «hf enatbedng ~—on a mengdy heels whh each dspoeN lo bs mwds by a dear vddoh le no later than ehiy(80) days aller 0» tact day of Ihe mcngr hebrg ~~ andfar for vddch funds «esubject to dspoeN. Such funds ehagbshtdd for 0» aeehwh» uas, and sole hensNI of,0» person sagged th«eto untN such funds c«r bs pfdd lo such e) er untN IheEscrow Agent reNnqulehee such Ands as requbed by lew or to Onler of Ihe

17.

17.1. AppNcsrd ie flange RaaoutaseWns Meuatefn, Inc. AppNcant ie duly sug»riced andqusNNed Io transact bueb»ss In N»

Creation~

~ of Vbgbrht;

17.2. AppNcam fbsags INestnaeeaPh» « ~, lnc. Ie an operator irj 0»of Vbghds, snd hse sagegsd'Ihs Sosnys requa~rmena for oymmsanp Ill

17.3. AppNcant Qaags Itesearessdrh» MstatiMs, Ine. chdrne72:=:::~psn»nt of Subject DrMng Unit end 0» right topreduds Qae gom same;

of Qae lessee onfor, devtdsp, and

17.4. AppNcard hae proposed Ihe drNNng of~ifo.V~ lo e of~fest on 8»Subject DrMhg Unit et 0» haagon ~on SAON A lo 0» pool of Qee inSub)sot Fcrmagcr», end IO —.v'nd CP«ate &NSQa. V Ihr 0» PurPOee Ofpoducahg Conventkrnel Qaa

17.5

17.8

17.7

17.8

17.0

The estbnatsd producNon of the Nfe of 0» proposed Wsg No. V~ le 300 «w»f.

yygh this Applk»gcn, nogcs wae pnnddsd Io svaryor» tdsbnbtg + own«eidp Int«eetrekgve to 0» production of com ~ 'ae in 0» tg Urdt. Sat forlh Nr

~tgdhS 04, lethe n«v» and lest hnownadgreee sfeach or~ —by

0» AppNcsnt ae Qas cwn«a ln Suhjaol QINNng Ung who hae nol, In wdgna Ieaead to 0»~or 0» Unit 0'psratarsr ag»«Itico~ pool Ids '~ hr.gubjstNDrMngUnit lcr Ne dsvelopnent. Qae a~ t ~ IO Ihs Op«alar «jd Nel«l In gtthtMI Q-3 r~~ea Nycti m pere«d of Subject DrMng

Un'e

evidence eetabNei»d that 0» feb; reasonable and c—,v——tobe prdd lo any person in Nsu of the right lo p«thdpats in the are those opgonepawl'n P«agraph 0 above;

The Sub)a«Dr@ng Unit does not ccneghde en unreasonable or arbhrary exedes ofAppNcent'e dght lo «qdore for or produce Qae;

opportunhy to recover or receive, wNhout unnecessary expense, su dt person'S just Snd

fair share of ths Pnxlucgon Horn Subject OrNHng Unit. The grandng of ths APPNcstke snd

reNef naawehd Ihereln wS ensure Io I» ostent possible tha greatwl ugbnate recovery ofconvsngonsl Gss, prevent or assist in prevangng the venous typat of wadis ~by ~ snd protect or ssahd In~Nts oorndadvs rtghte irf ag persons ln the

subject common sources of supply in Nut Subject Lands. Thsrskve, the Sosrd is

sn Order grangng grs reHsfhsndn sst forth.

18. NHsgnc Qf Order And FSno Of Agbsadb AppNcant or Ns~ shaN IHa sn sigdsvH

whh the secretary of tha scant wNhin sbdy jsg) days alter lhe chde of econgng of tlHs order staNng gud

a true and coneot copy of saki order was maHsd wNhh seven jy) days from the dry~ of Nsreadpt by the

Unit ~ lo each ftespondent named in Sxhgdt I84 pooled by this Order srd whose address is

19. AvsHebstv of Unh Records: The Skeeter shsH provide aN persons Q subject to s brass

wNh retaronstde access lo ag resents for subject DrHHng Unit whkh are~bylaw Unh operator to

srdd KHiector andfor Ids ~s).20. Csnchrskrn: Therefore, the~reNsf and sg terms and p ovhjtons setanth above

be snd hereby sre.granted snd IT NN SO ~ieeaoHI.

21. ~:Appeals of tide Order ae governed by the prcvitdons of V). Code Ann. g 45.1-381.8wtdch provNHss Hud any order or de@she of lhs Soard msy be appealed to N)s spproprhda circuit

22. ~Dots: Ttds Order shaH be effecHve as of Nut date of the ~'s approval of this

Appgcstian, whkh hr sat'fsrth at paragraph 1 above.

HK 469PII 682

DONE AND EXECUTED this &4 day of ~ . 2009,~ by a melorhy of ths

&I~fIIHII~~I ~\

DONE AND PERFORMED this 2V day of 6 44,2Q, by Order of this

M..—.S.A~Vtrytnta Gas end Q Soerd

STATE OF VSttNSSA )COUNTYOF ..' .~ )

2DAs'~~ on this day of ~ . 2008, penotary pubNc in and for the CommorsseeNh of VNStnte,

= ~~Lambert,depose and eay that he ls Chabmen of the ~Quand ON Sossd, and appaabebtS dilly seam dtd dePose end say that he ls r in~ EseodIN to the Staff of

rIronaNy before me a

Soard, plat Stay ~the same anil were a ~~ to do so.

Dfafte L Davte, Nblftyjf

My--—~expbes: Seplamber 30, 2009

ltHewanlssso~.~~~.nns.no.~. nsnrt

2

O

'4Mf844

40~; .Ossy %45)W iaifs 'if BiEfos

Ocr 4=-—-- f;: -..-.:Ono Co.)O APSAt E~y 4yo sf Qs» ~ ffLffe Ae.

IIiEKL UCATfBN FMT

sss olnnssn ~sy Q~sany Sen fief Neseosont P-OE4

MiBMffY Aanas ———=--~~.fsc. WELL NAME AND NUMBER tf-SmeaTeer ter~ os ~~ w ~ Etaffiel 1-fssfi~ auAOftANGLE

COWrr ~-—= OSWer ~ SCALE 1 - 4dff'ATE O-W-~This Plot is e beo fdot ~; on sfydoted fdot; or a finei laaobon fyfet

Denotse tbs focotfon of 0 Oefl on tfnfted Notes topogfeffbtc Mops, ecole 1~

tc24,0N,.lotfbsfe end lonifftuds lines beintf r~ ed by bonier lines os s

.---I er-~Exhibit Aonn ~

BK 469PG 68',

Exhibit "$4w - Unlessecl OwnersNell 'No. V~OO$ 8

Tract LessorInterest Wltirln Grass Acreage

Lease Status Unit in Unit

1 George W. Deal, Jr.Unknown HeirsTax Card ID - Minerals Only

Unieaeed 27.61000000 31.11000000

TOTAL GAS ESTATE 27.610000OI 31.11000000

(mswad20o3:Ipmoylpooha.wra oo. Y~.axe-s)

8K 469'85

Exhibit "E"-escrow DtenereWell 'No. V<30091

Lessor

Gss%Naie Only

Interest WISrg Akess AcreageUnit, "-" In Unit

1 George W. Deal, Jr.Unkrown HairsTax Card ID - Minerals Only

Unleased 27.61000000 31.11000000

TOTAL GAS ESTATE 27.61000000 31.11000000

ImaeNs2$ 8 Ipmos4xul'ms.was no.v430098.exE]

iMSlli{.Eti~'l II'ifQL'9'.i,„"SEC0IIDF:i .'8 fH": L'Ily'J V," .'i', JF

'>r;-Nb'JfA UNJ' A' J4f'I'